Minimum Wage Preemption: Allen vs Plano
How do minimum wage preemption rules compare between Allen, TX and Plano, TX?
Allen and Plano have similar restriction levels.
Allen, TX
Collin County
Texas Labor Code Section 62.0515 expressly preempts municipal and county minimum wage ordinances. The state minimum wage equals the federal floor of $7.25 per hour, and political subdivisions cannot require private employers to pay more, except for their own contracts.
View full Allen rules →Plano, TX
Collin County
Texas Local Government Code 229.001 preempts Plano from setting a local minimum wage, leaving the federal floor of 7.25 dollars per hour as the legal minimum across Toyota North America, FedEx Office, JCPenney, and every other Plano employer.
View full Plano rules →Key Facts Comparison
| Fact | Allen | Plano |
|---|---|---|
| Statute | Labor Code 62.0515 | - |
| State Minimum | $7.25/hour | - |
| City Employees Exception | Permitted | - |
| Reinforced By | HB 2127 | - |
| Federal floor | - | 7.25 per hour |
| Tipped wage | - | 2.13 per hour |
| State preemption | - | TX Loc Govt 229.001 |
| Local override | - | Prohibited |
Highlighted rows indicate differences between cities.
Allen FAQ
Can Austin or Houston set a $15 minimum wage?
Not for private employers. Cities can set higher wages for their own city employees and contractors but cannot mandate it for private businesses operating within city limits.
Does Texas have its own minimum wage above federal?
No. Texas Labor Code 62.051 ties the state minimum wage to the federal Fair Labor Standards Act rate, currently $7.25 per hour, with no automatic state increases.
Can cities require living wage for contractors?
Yes for direct city contracts and city employees, but not for private employers generally. Some cities use procurement preferences to encourage higher wages.
Plano FAQ
Can Plano City Council raise the minimum wage to 15 dollars?
No. Texas Local Government Code 229.001 fully preempts municipal wage regulation. Only the Texas Legislature or Congress can raise the floor that applies inside Plano city limits.
Does Plano require a higher minimum for city contractors?
Plano can set wage floors for city employees and direct contractors as a matter of contracting policy, but cannot require private employers in Plano to follow that rate under state preemption.
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